Everyone knows that, in the modern world, social media is a force to be reckoned with. This is where most people get their news from, as well as a primary method of communication for a lot of internet users.
Whenever there’s something new, be it a trend or an asset, you better believe that the awareness of this will spread through social media. This was (and still is) the case with cryptocurrencies. With that in mind, here are the top seven ways social media is responsible for the growth of cryptocurrencies.
1. Community building
One of the best ways to share information in the modern world is through social media communities. Facebook groups and dedicated subreddits, as well as Telegram channels, are some of the fastest, most reliable call-ins there are. Just remember a few years back when r/wallstreetbets orchestrated a GameStop short squeeze. After that, who can underestimate them?
Sure, the term “crypto bros” is a phrase that has a negative connotation, but its existence already suggests that a community exists. It also shows that it’s large and loud enough to be noticed and even get on some people’s nerves. This, too, is an indicator that things are moving in the right direction for the crypto community.
Overall, people who really wanted to get started in the world of cryptocurrencies had an easy job of just finding the right community. Here, they would learn about the technical aspect of crypto trading, pick up some tips, or even learn of lists with the newest cryptocurrencies that they could invest in for early adoption.
2. Information sharing
The information spread on social media is wild and nearly impossible to stop. Sure, it’s not always as verified as it should be, but this doesn’t defeat the fact that the majority of people have actually heard of cryptocurrencies over social media. Even in 2017, when there was that massive boost in the popularity of these assets, the majority of people heard about them from social media (even though mainstream media reported on them as well).
Sure, there are a lot of crypto blogs and newsletters out there; however, the majority of people find out about them when they encounter a shared link by some of their friends on Facebook or Instagram. With the fact that the majority of users already using VPN, not even geo-restrictions are an obstacle. On Techopedia, one can easily find a list of all the best VPN apps and prevent social media and Google algorithm regional biases and find quality information from all over the world.
Of course, we’re by no means underestimating the power of SEO, backlinks, and these sites appearing in organic searches; however, a lot of people just passively encountered these links. Same as with AI in 2023, there’s always that one massive topic that everyone shares, and everyone seems to talk about. At that point in time, this was crypto.
3. Influencer endorsement
As the cryptocurrency market grew, more and more famous people and people of authority started investing in cryptocurrencies. Sure, some accepted sponsorship contracts, but there were others who actually became brand ambassadors out of conviction.
This further created a loop. You see, as the topic became bigger and bigger, even people who had no stake in crypto saw the opportunity to speak up on the topic that their audience showed interest in.
It’s more than obvious that once BTC exploded, everyone and their grandmother started posting about it, regardless of their status or following. This greatly contributed to BTC becoming a household name (and, by extension, cryptocurrency).
4. Viral trends
Cryptocurrencies are almost 16 years old. This means that they’re one of the youngest markets out there. One of the reasons why they are still so volatile is the fact that new trends emerge on a regular basis.
For instance, just last year, there was a massive increase in interest in AI-powered decision-making in bitcoin trading. Robo traders are quickly taking over the world of investment, and cryptocurrencies are not an exception. Still, in order to pick up on a trend, you must first learn about it.
This is just one example of all the latest trends that one would miss if they disappeared from social media. We’re talking about things like data availability layers, staking, DePIN, real-world asset tokenization, and much, much more.
Sure, not all of these trends are as valuable to all traders, but just being aware of things that are going on will already put you ahead of the curve.
5. Real-time market updates
People who have trading platform apps installed follow the market on a daily basis. This is especially the case for people who actively trade in crypto. Some blogs dedicated to crypto trading have price heat maps.
The problem is that this type of market update only affects people who are already crypto traders. In order for the market to grow, it requires fresh traders, and keeping people who are not already in this world up to date is one of the ways to get there.
It’s like with the series that you’re aware of but not following. You scroll through your feed and see article after article and meme after meme. It’s only a matter of time before you give the series a try.
This passive market value tracking is how most people got into crypto.
6. Presales and ICOs
Sure, a lot of people google BTC and ETH, but what about smaller coins? What about coins that are just trying to break into the market – all the presales and ICOs? What about coins that don’t have any traction or interest?
When it comes to creating a trend or manufacturing interest, your safest bet lies in using social media. This way, things will just organically pop on one’s feed, and they will notice the title, perhaps even read the social media post without thinking about it twice. The next time they encounter this same topic, they’ll recognize it, which might be enough for them to carefully consider it.
We’ve already mentioned social media communities. A person who recognizes the potential behind a particular ICO or presale will have a much easier time spreading the information on a Reddit thread or in a Telegram channel. The advantage of these communities is the fact that everyone in them is already a qualified lead.
In other words, it’s easier for presales and ICOs to break through this way.
7. Regulatory awareness and advocacy
So far, we’ve mostly discussed ways in which people use social media to promote cryptos. However, this is not all that social media is good for. If you’re a member of the right groups and channels, chances are that you’ll encounter the news of any new regulation.
The reason why this is so important is that crypto is still largely unregulated but it’s big enough for every region and organization to actively work on it. This means that even regions that still don’t have crypto regulated are just about to do so.
The problem is that legacy media still ignores all the news regarding crypto (except for something really major). This means that the chance that you’ll miss something important is quite significant. Well, on social media, this is less likely to happen.
As someone who is interested in crypto, your feed is probably such that this won’t be likely.
Crypto and social media always go hand-in-hand
Without social media, cryptocurrencies wouldn’t be as popular and widespread. The fact that this asset exploded during the social media era speaks volumes about the speed of information transfer in the modern world. This is a never-ending process, and the fates of crypto (and De-Fi) and social media are still tightly intertwined.